media business models Tag

The media industry is still struggling for survival and sustainability, constantly exploring new business models that can achieve this goal. Many industry analysts predict that 2019 will mean less money and more cuts. INNOVATION believes that with a solid revenue diversification strategy, this risk can be mitigated. (However, diversification is not deviation; journalism should remain at the core of any media business.)


New emerging business models that have arisen in the past year can contribute to the refreshment of current business strategies. Each model described has its strengths and weaknesses as well as business risks.

Nevertheless, with an innovation mindset that stimulates exploration and learns from mistakes, media companies can take advantage of these global examples. This article explores these new business models that, according to INNOVATION, offer the most potential for success in the media industry.

Your data may be worth (a lot) more than you think...

Data in the media world used to mean just four things:
1. Number of subscribers
2. Number of newsstand sales
3. Advertising revenue
4. The number on the bottom line

Today, data are what your chief data scientist parses and interprets for you. If you don’t have a chief data scientist, data are what you and your team struggle to convert into editorial, sales, and marketing insights.

But even that is a limited view of the power of data today. Today, data can be much, much more. Data can actually make you some serious money.

Bespoke software systems built BY media companies FOR media companies have proven successful and profitable for a select few.

If you’ve worked at a media company, you have had the “pleasure” of using a content management system or ad management tool, and you know it is, in fact, rarely a pleasure.

In the last five years, a few media companies decided to do what everyone else was thinking: WE could do a better job at this!

And why not? Who knows the needs of the editorial and advertising departments better than those departments themselves?

The frustration boiled over first at the Washington Post back in 2014. Over the following few years, Vox Media, New York Magazine, and Hearst all got into the Software as a Service (SaaS) business.

The Washington Post’s Arc system

Even before Amazon chief Jeff Bezos bought The Washington Post, the company was moving in the direction of solving its tech problems by itself.

While the company was scrambling to keep up with the lightning speed of digital change, they, like most other media companies, discovered that their CMS and ad management systems were holding them back.

“As a business, we asked more of our newsroom,” Jeremy Gilbert, the company’s Director of Strategic Initiatives, told Fast Company. “What we noticed was: 1) We didn’t have the tools to be more productive and, 2) The CMS was a fairly monolithic platform. Adding any features to it, making any changes to it, or getting support from vendors was just very difficult.”